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HomeMy WebLinkAboutCC Min 1986-08-04 7-28-86 /8-4-86 AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried By unanimous consent, the meeting adjourned at 11:35 p.m. Approved: and ex-off City Council of the I Attest: I Seal Beach, California August 4, 1986 The City Council' of the City of Seal Beach met in regular adjourned session at 7:00 o'clock p.m. with Mayor Clift calling the meeting to order with the Salute to the' Flag. ROLL CALL Present: Mayor Clift Councilmembers Hunt, Risner, Wilson Absent: Councilmember Grgas I Councilman Grgas arrived at 7:08 p.m. Also present: Mr. Nelson, City Manager Mr. Stepanicich, City Attorney Mrs. Yeo, City Clerk 8-4-86 I WAIVER OF FULL READING Wilson moved, second by Risner, to waive the reading in full of all ordinances and resolutions and that consent to the waiver of reading shall be deemed to be given by all Councilmembers after reading of the title unless specific request is made at that time for the reading of such ordinance or resolution. AYES: NOES: Clift, Hunt, Risner, Wilson None ZOETER SCHOOL SITE - PROPOSED BONDED INDEBTEDNESS The City Manager presented the staff report regarding placement a general obligation bond measure on the November ballot for the acquisition of all or a portion of the Zoeter School site. Mr. Nelson reviewed the value of the site based upon a December 20, 1985 property appraisal, and a comparison of five alternatives for acquisition of the property which set forth the square footage, the percentage and computed value of each area. Mr. Nelson also reviewed his report relating to the value of and potential for sale or lease of the 7.27 acre parcel of land located adjacent to the Public Works Yard. The City Manager advised the Council of the actions necessary to place a measure on the November 4th ballot, and the need to determine the principal amount of the general obligation bond issue. 1- Councilmember Wilson expressed her feeling that a bond issue in an amount that would allow acquisition of a portion rather than the entire site would be more likely to receive voter approval. Councilmember Risner concurred, suggesting that acquisition of the playground and child care areas be given strongest consideration, noting that revenue from the child care facilities could cover maintenance costs for the additional public use property. In response to Council, the City Manager advised that the ball field, even with acquisition of an additional 61.65 feet to the north of the site to be acquired under Naylor, would accommodate slow-pitch ball only, not fast-pitch, also that relocation of the children's playground equipment has not been a matter of discussion with the School District. Councilman Grgas suggested that before a final determination is made as to the amount of the bond issue, Council may wish to consider a bonded amount for the entire site, taking into consideration revenue that could be generated from the sale of the property adjacent to the City Yard for approximately $584,000, and the lease potential of 10,000 square feet of on-site space at a minimum of $1.00 per square foot for commercial use, which could result in an issue of approximately $500,000 more than is proposed for the purchase of a portion of the site. The City Attorney advised that in addition to the actual property acquisition cost, it would be necessary to include the issuing costs, and explained that the City's financial consultants have estimated that if it were the desire to net $3.5 million to acquire the entire site there would be a need for an issue with a principal amount of $3,750,000, and to acquire a portion of the site at the estimated $1,449,003 purchase price, an issue of $1,625,000 would be necessary. Mr. Stepanicich noted that the consultant had indicated support I 8-4-86 for placing a $1,625,000 issue on the ballot which would not only be sufficient monies to purchase a portion of the site as outlined by the City Manager, however would also provide funds that could be used in conjunction with other monies to acquire a greater portion of the property, noting that the language proposed for the measure allows greater flexibility for the Council after approval by the I voters. He also clarified that if the Council placed a request for authorization to issue $1.625 million on the ballot, that would be the maximum bonded indebtedness the City could incur, therefore additional monies would need to come from other sources. With regard to the values placed on the various portions of the property by the appraisal, the City Manager advised that the residential portions were valued at $40 per square foot and commercial $37.50 per square foot, clarifying that only open space lands may be acquired under the Naylor Act, and noting specifically that the tennis courts are zoned commercial therefore of lesser value. Councilman Hunt referred to the estimated value of the property adjacent to the City Yard, questioning whether that property would presently be considered at its maximum worth and if it would be economically sound to sell that property at this time. The City Manager advised that the concern expressed by real estate persons he had contacted was with the location of the site and the constraints of accessibility, and explained that the property could be developed as light commercial or manufacturing, with development of the Rockwell properties having the greatest impact on its use. Mr. Nelson acknowledged his belief that the subject property is more than likely at its maximum potential at the present time and will appreciate only in line with surrounding properties. Mayor I Clift suggested that the Council consider a bond issue of lesser amount that may receive voter approval, and if it is determined at a future date that acquisition of the remainder of the site is feasible, sale of the property adjacent to the City Yard could be considered at that time. Discussion continued regarding the amount of the bond measure, taking into consideration the potential revenue from lease of the existing structures for commercial use, income from the child care facilities, maintenance of the property, and funds that could become available from the sale of other City property. Councilman Grgas urged Council consideration of a $2,200,000 issue which would purchase the playground and child care facilities and would allow flexibility to pursue other sources of funds for the purchase of the entire site. Discussion followed. Councilmember Risner moved to authorize submittal to the voters a general obligation bond issue in the principal amount of $1,625,000 which would allow acquisition of an additional twenty-seven percent of the Zoeter School property. Mayor Clift clarified that the property being considered for acquisition by this motion would include the playground, child care facilities and the bleacher area. The staff estimated that the cost of a $1,625,000 issue to a property owner would be approximately $13.30 per $100,000 of assessed I valuation versus $17.50 for a $2,200,000 issue. The majority of the Council indicated their desire to submit one rather than a choice of two measures to the voters. Councilman Grgas again spoke for a larger bond issue, pointing out . .~.. '. ," 8-4-86 I that the larger issue may enable acquisition of the entire site which, in the future, would be a great asset of the City rather than permitting a developer or other entity to pursue development of the property to their financial benefit, and suggested also that it may be possible for the City to develop the site under a ground lease for a bonafide public purpose pursuant to the authority of AB 912. The City Attorney responded to Councilman Grgas' suggestion, advising that additional research would be necessary to determine if a ground lease development would be feasible given the declared public purposes that have been previously set forth for the bonded indebtedness. The City Manager added that it would be necessary to have a committed purpose for the revenue, as well as a fixed lease of the property for the term of the bonded indebtedness. The City Attorney noted also that at some point the School District may not wish to sell additional increments of the site as it may render the remaining portion usable. Councilman Hunt spoke in support of Mr. Grgas' bond amount proposal, stating that it could provide the one opportunity to develop a viable financial plan for acquiring the entire site, noting also that he did not feel the difference between the amounts under discussion would affect the vote on the measure to any degree. There was no second to the motion on the floor. Council inquired as to the area of the site that could be obtained with a $2,200,000 issue. I The Council, by unanimous consent, declared a recess at 8:21 p.m. The Council reconvened at 8:30 p.m. with Mayor Clift calling the meeting to order. The City Manager described the boundary of the area that could be acquired with a $2.2 million bond issue as basically from the southerly boundary of the tennis courts, easterly and northeasterly to and including the area of the temporary on-site buildings. Mr. Nelson added that he is aware of the District's desire to retain an approximate two hundred foot depth in order to maximize the price for the commercial portion of the site. Mr. Steve Friedman, Los Angeles, spoke regarding the ongoing negotiations with the School District, cautioned against appearing to withdraw from an intent to purchase the total site, and spoke in support of the $2,200,000 issue. Mr. Friedman also suggested that revenue derived from leasing the buildings for commercial use should be given strong consideration, that a minimum rent increase of the child care facilities is possible, and noted that the use of Quimby Act monies has not been discussed. Discussion continued with regard to revising the proposed acquisition boundary directly across the site, and likewise revise the bond issue amount to $1,750,000. Councilman Grgas moved to authorize a general obligation bond issue not to exceed $2,200,000 for acquisition of all or a portion of the Zoeter School site. There was no second to the motion. I Risner moved, second by Wilson, to authorize a general obligation bond issue of $1,750,000. The City Attorney noted that the issuance cost of the two amounts originally considered had been estimated by the City's financial consultants, and advised that by adjusting the net issue, the cost of issuance would likewise be revised, therefore the total amount of the proposed issue had not been calculated. 8-4-86 By unanimous consent, the Council recessed at 8:50 p.m. to allow staff to calculate the estimated total bond amount. The Council reconvened at 8:58 p.m. with Mayor Clift calling the meeting to order. The City Manager advised that in order to acquire the portion of the property to approximately the three hundred ten foot line north of Landing Avenue, a net bond of $1.78 million would be required with a total issue of $1.95 million. I Mr. Nelson pointed out that the City Attorney had advised that the financial consultants will also be considering the portions of the City that are within the Redevelopment Agency, taking into account the tax increment, when determining costs. Mr. Nelson again reported the cost for the three issue amounts under consideration to be approximately $13.00, $15.55 and $19.65 per $100,000 assessed valuation. The City Attorney clarified that the amount authorized for the ballot measure merely sets a maximum of bonded indebtedness that the City could issue, and that bonds of a lesser amount could be issued. Discussion concluded with the members of the Council again expressing their views regarding the amount of bonded indebtedness to be proposed to the voters. Clift moved, second by Risner, to authorize the issuance of a $1,950,000 general obligation bond measure for the acquisition of all or a portion of the Zoeter School site. Councilman Grgas explained that he would vote in opposition to the motion based upon the smaller bond authority, however stated that he would work on behalf of the measure. AYES: NOES: Clift, Hunt, Risner, Wilson Grgas Motion carried ORDINANCE NUMBER 1227 - CALLING SPECIAL MUNICIPAL ELECTION - BONDED INDEBTEDNESS - ZOETER SCHOOL SITE Ordinance Number 1227 was presented to Council entitled "AN ORDINANCE OF THE CITY OF SEAL BEACH ORDERING THE SUBMISSION OF A PROPOSITION OF BONDED INDEBTEDNESS TO THE VOTERS OF THE CITY OF SEAL BEACH AT A SPECIAL MUNICIPAL ELECTION AND ORDERING THE CONSOLIDATION OF SUCH SPECIAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON NOVEMBER 4, 1986." By unanimous consent, full reading of Ordinance Number 1227 was waived. The City Attorney advised that the $1,950,000 figure should be inserted in the Ordinance and Resolutions where applicable, and confirmed that passage of the Ordinance requires a four-fifths vote. Councilman Grgas stated for the record he would vote in opposition to the Ordinance for the reasons previously stated. Risner moved, second by wilson, to adopt Ordinance Number 1227 as amended, inserting the figure of $1,950,000. I AYES: NOES: Clift, Hunt, Risner, Wilson Grgas Motion carried RESOLUTION NUMBER 3627 - REQUESTING CONSOLIDATION - SPECIAL MUNICIPAL ELECTION - NOVEMBER 4, 1986 Resolution Number 3627 was presented to Council entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, I CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF ORANGE TO CONSOLIDATE A SPECIAL MUNICIPAL ELECTION TO BE HELD ON THE DATE PURSUANT TO SECTION 23302 OF THE ELECTIONS CODE." By unanimous consent, full reading of Resolution Number 3627 was waived. Risner moved, second by Wilson, to adopt Resolution Number 3627 as presented. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried 8-4-86 RESOLUTION NUMBER 3628 - IMPARTIAL ANALYSIS Resolution Number 3628 was presented to Council entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS." By unanimous consent, full reading of Resolution Number 3628 was waived. Wilson moved, second by Clift, to adopt Resolution Number 3628 as presented. I AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried RESOLUTION NUMBER 3629. - AUTHORIZING WRITTEN ARGUMENT Resolution Number 3629 was presented to Council entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING CERTAIN OF ITS MEMBERS TO FILE A WRITTEN ARGUMENT REGARDING A CITY MEASURE." By unanimous consent, full reading of Resolution Number 3629 was waived. Wilson moved, second by Clift, to adopt Resolution Number 3629 as presented. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried APPROPRIATION - SPECIAL MUNICIPAL ELECTION - NOVEMBER 4, 1986 Risner moved, second by Clift, to authorize the appropriation of $12,000.00 from unappropriated General Fund monies to the Election Account to cover estimated costs related to the Special Municipal Election to be held November 4, 1986. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried 1 COUNCIL ITEMS The City Manager reported that the Municipal pier would be closed on Wednesday from 8:30 p.m. to 10:00 p.m. to accommodate the notice from the Orange County Superior Court that they intend to use that facility in connection with the Virl Earles trial. Councilman Hunt inquired if it would be legally possible to allow Seal Beach senior citizens to park in the beach parking lots during the week at a reduced rate, which would in turn encourage Leisure World residents to frequent the downtown area. The City Manager suggested that the Council would need to address the matter from the standpoint of fairness, and expressed his concern with granting an economic benefit to persons based upon age only. The City Attorney noted that the beach area is under lease from the State and under the terms of the lease there may be a question as to whether the City could offer preferential parking rates to certain citizens. I ORAL COMMUNICATIONS Mayor Clift declared Oral Communications open. Mr. Bruce Stark, 204 Ocean Avenue, spoke regarding the Zoeter site and the proposed ballot measure, and the monies that may be forthcoming to the Los Alamitos School District for the site. Michelle Brendel, 204 Ocean Avenue, spoke regarding downtown parking, a problem which she claimed is created by new establishments in the City. There were no other communications1 Mayor Clift declared Oral Communications closed. CLOSED SESSION The City Attorney reported the Council Session to discuss personnel matters. would meet in Closed By unanimous consent, 8-4-86 the Council adjourned to Closed Session at 9:37 p.m. The Council reconvened at 10:32 p.m. with Mayor Clift calling the meeting to order. The City Attorney reported Council had met in Closed Session to discuss personnel matters and that no final action had been taken. RESOLUTION NUMBER 3626 - SALARY SCHEDULE/BENEFITS - MANAGEMENT/NON-REPRESENTED/PART-TIME EMPLOYEES Risner moved, second by Wilson,' to amend Section 6 of Resolution Number 3626, adding a sentence to read "Not withstanding the foregoing, at no time shall any employee receive a sick leave payoff in excess of $5,000." I AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried By unanimous consent, full reading of Resolution Number 3626 was waived. wilson moved, second by Clift, to adopt Resolution Number 3626 as amended entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, A CHARTERED CITY, ESTABLISHING A SALARY AND WAGE SCHEDULE, AUTHORIZING THE IMPLEMENTATION OF EMPLOYEE BENEFITS FOR MANAGEMENT, NON-REPRESENTED AND PART-TIME EMPLOYEES AND REPEALING, ON THE EFFECTIVE DATES SPECIFIED, ALL RESOLUTIONS IN CONFLICT THEREWITH." AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried ADJOURNMENT By unanimous consent, the Council adjourned the meeting at 10:35 p.m. I Attest: . Approved: '1